Culpeo Minerals will ask investors for $1.71 million to pursue further exploration at its Chile-based projects.
The Perth-based company has been a solid performer over the past month on the ASX, with its share price rising by 136 per cent in early January, following news of positive sample surface grades of both copper and gold at its newly acquired Fortuna project.
Culpeo told the market it would issue 28.5 million shares to professional and sophisticated investors, at a placement price of 6 cents per share.
Additionally, it will issue one free attaching unquoted option for every two placement shares subscribed for with a 10-cent exercise price, which will expire two years from the date of issue, subject to shareholder approval in late March.
Unified Capital Partners has been appointed lead manager of the placement.
Culpeo said either Unified or its designated nominee would receive a 6 per cent management and selling fee, applying to all funds raised.
Upon completion of the raising, Unified will also acquire 2 million unquoted options, with a 10-cent exercise price. This offer will also expire two years from the date of issue.
“We are very pleased with the strong support from both new and existing investors, who have been attracted to the high potential evident at our Fortuna and Lana Corina projects," Culpeo managing director Max Tuesley said.
“Proceeds from this fundraising will be used to continue the advancement of exploration activities and unlock the inherent value of our copper project portfolio. Activities in the first quarter of 2024 will include ongoing mapping and sampling programs in conjunction with drill testing of high-priority targets."
The company intends to complete a variety of surface mapping and drilling activities at Fortuna, along with drilling to test near-surface brecchia targets at Lana Corina.
Culpeo acquired Fortuna in August last year - located in Chile's Coquimbo region - and began drilling a few months later in December. It also subsequently secured a new concession package, expanding its Fortuna footprint to 4,025 hectares,
Lana Corina, a copper-based project which has been in Culpeo's portfolio since 2022, is located 10 kilometres south of Fortuna.
